Tax-Free Savings Account

TFSA: tax-free growth for any goal

The 2026 annual limit is $7,000. If you've been eligible since 2009, your total room is $109,000 — and everything it earns is yours, tax-free.

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The basics

Open one if you are 18 or older with a valid SIN.
Contributions are not deductible — but growth and withdrawals are tax-free.
Withdraw any time, for any reason; the amount is added back to your room next January 1.
Income and withdrawals don't affect income-tested benefits.

How contribution room adds up

Year(s)	Annual limit
2009–2012	$5,000
2013–2014	$5,500
2015	$10,000
2016–2018	$5,500
2019–2022	$6,000
2023	$6,500
2024–2026	$7,000
Total since 2009	$109,000

Room starts accumulating in the year you turn 18 (or become a resident) and carries forward indefinitely.

Smart ways to use a TFSA

Emergency fund

Keep 3–6 months of expenses in a guaranteed option you can access quickly.

Retirement top-up

Tax-free withdrawals won't claw back OAS or GIS — a powerful complement to an RRSP.

Lower-income years

If your tax rate is low today, a TFSA often beats an RRSP.

Estate planning

Successor holders and beneficiary designations can simplify passing on savings.

Mistakes to avoid

Re-contributing a withdrawal in the same calendar year without room.
Using the TFSA as a trading account — frequent trading can be taxed as business income.
Leaving it in cash earning little or nothing for years.
Relying on CRA's room figure mid-year; it doesn't reflect this year's transactions.

Sources: CRA – TFSA room · CRA – limits. Figures current for 2026; verified September 2026.

Interactive

Check your room and project your growth

TFSA room & growth calculator

Year you were born

Year you became a Canadian resident (if after 2009)

Total contributed since 2009

Total withdrawn before 2026

Withdrawals are added back to your room on January 1 of the following year.

Withdrawn so far in 2026

Plan to contribute each year

For how many years

Assumed annual return (%)

Estimated available room today

—

Room accumulates from—

Cumulative limits to 2026—

Estimated room on Jan 1, 2027—

Projected tax-free value

—

You contribute—

Tax-free growth—

Your contributionsGovernment moneyInvestment growth

Hypothetical illustration using 2026 program rules; assumes rates and rules stay the same and returns are constant. Not a guarantee of future values. Segregated fund values fluctuate.

Video library

TFSA Essentials

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TFSA questions

What is the TFSA limit for 2026?

$7,000. If you were 18 or older and a Canadian resident in 2009, your total cumulative room in 2026 is $109,000 if you have never contributed.

When do withdrawals get added back?

Amounts you withdraw are added back to your contribution room on January 1 of the following year — not immediately.

What happens if I over-contribute?

CRA charges a tax of 1% per month on the highest excess amount in each month until it is withdrawn or new room becomes available.

Do TFSA withdrawals affect government benefits?

No. TFSA income and withdrawals do not count as income for federal income-tested benefits such as the Canada Child Benefit, GST/HST credit, OAS or GIS.

Can I name a beneficiary?

Yes. You can name a spouse or common-law partner as successor holder, or name beneficiaries — through a segregated fund contract, beneficiary designations can help assets pass outside of your estate.

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